Managed Markets / New Feature

Automate duty-inclusive pricing
Boost cross-border conversion with Managed Pricing in Managed Markets

Bake duties, import taxes, transaction fees, and currency-conversion costs into product prices upfront, so international buyers see a price that stays the same to the very end. Surprise charges at checkout or on delivery disappear.

On this page
  1. What's actually changing (30-second overview)
  2. How it works: building the price and following the money
  3. Breakdown of costs baked into the price
  4. Before (duties billed separately) vs. Managed Pricing
  5. What the "duty guarantee" means: who covers the difference
  6. How to verify (pre-launch demo and post-order breakdown)
  7. 5 key points for developers
  8. 3 practical use cases
  9. One-line summary for proposals

1What's actually changing

Merchants using Shopify Managed Markets can now turn on "Managed Pricing" in supported international markets.
Cross-border costs such as duties, import taxes, transaction fees, and currency conversion are automatically baked into the product price itself, so buyers see one consistent price from the product page through checkout and delivery.
+ duties?

Before: duties added separately at checkout

Duties and import taxes appear as a separate line item at checkout. The price on the product page and the final amount paid don't match, leaving buyers surprised by unexpected extra charges.

Managed Pricing: one all-inclusive price

Duties and import taxes are built into the product price, with no separate line item. The displayed duty amount isguaranteedat checkout, so even if the customs bill differs, it doesn't come back on the merchant.

2How it works: building the price and following the money

Base product price Duties & import taxes (guaranteed) Transaction fees FX & MM fees Cross-border costs calculated automatically Adapted Price Adjusted for each market "All costs included" displayed price Consistent from product page to delivery International buyers Pay exactly the displayed price Shopify Payments Duties, FX, and fees borne by the buyer Payout amounts consistent with domestic orders Payout to the merchant
The key point is "buyers bear cross-border costs directly via the adapted price" — that's the structure. Import taxes, duties, currency-conversion fees, and Managed Markets fees are paid by the buyer within the displayed price, while the merchant's payout stays as stable as for domestic orders.

3Breakdown of costs built into the price

Duties and import taxes
Amounts guaranteed at checkout
Transaction fees
Fees associated with payment processing
Currency conversion (FX)
Includes the cost of converting to local currency
Managed Markets fees
MoR service fees also shift to the buyer side
For each cost, thespecific rates and formulas are not stated in the article. Check the actual breakdown in the View as demo on the product detail page and in the payment section after ordering (→ Section 6).

4Before (duties itemized) vs. Managed Pricing

ItemBefore (duties shown as a separate line)Managed Pricing
How duties and import taxes appear Itemized separately A duty line is added at checkout Included in the price Built into the product price itself
Price consistency Product page and final amount paid can differ Consistent Same price from start to finish of the purchase
Discrepancy vs. customs charges Differences can occur Guaranteed Shopify Managed Markets covers the difference
Extra charges at delivery Possible(a cause of refused deliveries) None No more surprise fees
Merchant payout Some variability from FX and duty handling Consistent with domestic orders Processed through Shopify Payments

5What "guaranteed duties" means: who absorbs the difference

At checkout The displayed duties and import taxes are locked in (guaranteed) at this point Actual customs charges The amount customs actually charges may differ from the displayed amount Shopify covers the difference Managed Markets covers the gap. Neither the buyer nor the merchant is affected
The risk of duty estimation errors —a risk unique to cross-border ecommerce — is transferred to Shopify. This guarantee is possible because Managed Markets acts as the Merchant of Record (MoR), standing in as the seller.

6How to verify (pre-launch demo and post-order breakdown)

1

Before launch and in operation: the View as demo

On the product detail page, use the "View as" demo to see the localized price breakdown for each market from the buyer's perspective.

2

After an order: breakdown in the payment section

After an order comes in, you can check the breakdown of how the international price was calculated in that order's payment section.

The prerequisites are being a Shopify Managed Markets merchant, and selling in "supported international markets". The list of supported markets, specific activation steps, and eligible plans arenot covered in the announcement. Check the help docs and your admin before rolling this out.

75 key points for developers

1. Duty estimation risk shifts to Shopify

The duties and import taxes shown at checkout are guaranteed — even if actual customs charges differ, Managed Markets covers the difference. This eliminates the need to design for "difference settlement," the scariest part of DDP operations.

included

2. Duties become part of the "price", not a separate line

Duty will no longer exist as a separate line at checkout. Themes and Checkout UI Extensions that customize price display, cart, or order summary areas need display verification to make sure they don't assume the presence of a duty line.

Domestic Cross-border

3. Payouts become consistent with domestic orders

Import taxes, duties, currency conversion fees, and MM fees are borne by the buyer via the adapted price, and payouts are processed through Shopify Payments. This removes cross-border-specific variables from revenue reconciliation and gross margin calculations in accounting.

API ?

4. No mention of API / Webhook specifications

The announcement only covers the buyer experience and how to view the breakdown in the admin. It doesn't describe how duty or the adapted price is represented in the Order API. Stores with ERP / OMS integrations should verify the shape of order data in a sandbox.

5. Requires Managed Markets (MoR model) and supported markets only

This feature is for merchants using Shopify Managed Markets (Shopify's cross-border selling service where Shopify acts as Merchant of Record), and applies to "supported international markets".The list of supported markets is not provided in the announcement, so confirm in the help docs or admin that your key target countries are covered before including this in a proposal. There is also no mention of how standalone Markets (non-Managed) behaves.

83 use cases you can apply to your work

International CVR
USE CASE 1

Propose it as a fix for cart abandonment and delivery refusals in cross-border ecommerce

Challenge
International customers abandon checkout when they see duties suddenly inflate the total. Surprise charges at delivery lead to refused packages and return shipping costs.
Approach
Enable Managed Pricing in Managed Markets and show consistent, duties- and import-tax-inclusive prices from the start in supported markets.
Impact
Surprise fees at checkout and delivery disappear, reducing abandonment driven by price distrust and the risk of delivery refusals from international buyers. As the announcement title says, the goal is to "drive international conversion".
Technical notes
Before rolling out, use the View as demo to check displayed prices in key markets, and verify price competitiveness (whether the all-inclusive price looks too high) per product category.
USE CASE 2

Eliminate the "cross-border revenue variables" for accounting and finance

Challenge
Cross-border orders have hard-to-predict payout amounts due to duty settlements, currency exchange, and fees, forcing revenue reconciliation and gross margin management with logic separate from domestic orders.
Approach
Use Managed Pricing to shift cross-border costs into the buyer-side price, making payouts consistent with domestic orders. Check the per-order breakdown in the payment section.
Impact
Payout forecasting becomes easier, cutting the operational cost of maintaining separate accounting flows for domestic and cross-border orders. Irregular duty-difference settlements also disappear, absorbed by Shopify.
Technical notes
If you have an ERP integration, the announcement doesn't specify how duty is represented in order data at the API level. Compare order data before and after the switch to validate your integration mapping.
USE CASE 3

Compare "building DDP yourself vs Managed Markets" in new international expansion proposals

Challenge
A client wants to start selling internationally, but building it themselves — duty calculation engine, multi-currency support, local payment methods — carries heavy upfront costs.
Approach
Position Managed Markets + Managed Pricing as the centerpiece of your proposal: a packaged option covering duties-inclusive pricing, guarantees, and consistent payouts, and use the View as demo to show actual local displayed prices.
Impact
No separate contracts with duty calculation services or custom settlement flows for duty differences are needed, dramatically shrinking the implementation scope of a cross-border launch.
Technical notes
Managed Markets fees are also built into prices and shifted toward the buyer, but the article does not state specific rates. Check margin simulations separately on the official pricing page and reflect them in your proposal.

9One-line summary you can use in proposals

"In markets supported by Managed Markets, duties, import taxes, fees, and currency exchange are automatically built into product prices,
, the displayed duty amount is guaranteed by Shopify(Shopify covers any difference), andpayouts feel just like domestic orders.
A feature that lifts international conversion with a zero-surprise-fee pricing experience."